Insurance Term Quiz
Terms in this set (27)
Dividends kept by the insurance company for the policyholder. These grow and earn interest.
A yearly summary received by each universal life policyholder which includes total premiums paid, insurance costs and fees, cash values, and any policy loans or partial surrenders.
AUTOMATIC PREMIUM LOAN
This clause in an insurance policy allows the insurance company to take the amount of the premium out of the cash value if the policyholder can't make a premium payment. This keeps the policy from lapsing.
This clause in an insurance policy guarantees the policyholder continued renewal of the policy until a certain age no matter what the policyholder's health.
The individual or organization which receives the death benefit of an insurance policy.
CASHING IN A POLICY:
Stopping premium payments in order to drop the insurance coverage and take the cash value.
The savings accumulated in a whole life insurance policy.
A binding agreement between two or more people. An insurance policy between an insurance company and a policyholder.
This clause in an insurance policy allows the policyholder to change the type of insurance coverage.
The amount of money received by the beneficiary when the policyholder dies.
DISABILITY WAIVER OF PREMIUM:
This clause in an insurance policy waives the payment of the yearly premium if the policyholder should become disabled and continues the waiver until the policyholder returns to work.
The policyholder's share of profits from a mutual insurance company.
This clause in an insurance policy guarantees the beneficiary twice the face value of the policy if the policyholder dies accidentally.
The amount of insurance coverage purchased by a policyholder.
The termination of an insurance policy because the policyholder failed to pay the premiums.
MUTUAL INSURANCE COMPANY:
An insurance company owned by the policyholders.
The type of insurance policy which does not represent ownership in the insurance company. The policyholder does not share in dividends.
PAID UP INSURANCE:
Insurance which requires no further premium payments, but remains in force.
Taking a portion of the cash value from a universal life insurance policy without giving up the entire insurance coverage.
A type of insurance policy which includes ownership in the insurance company. The policyholder shares in company dividends.
A contract with an insurance company.
Monthly fees charged for universal life insurance in addition to the cost of insurance.
The person who is covered by an insurance policy.
The payment for an insurance policy.
An addition to an insurance policy such as disability insurance riders, inflation riders, and children's insurance riders .
STOCK INSURANCE COMPANY:
An insurance company which is not owned by the policyholders.
A specific period of time.
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